Primary importance: Demand has risen, but weak funding has constrained revenue

The Pre-Primary Education industry includes local authority nursery schools, privately funded schools, community organisations and private, for-profit businesses. Although nurseries are essential services for many working parents, the industry is not completely protected from wider economic conditions in the United Kingdom. Industry revenue declined from 2014-15 onwards as cuts made to government childcare programmes were most severe from this time. Revenue is expected to fall at a compound annual rate of 0.7% over the five years through 2017-18, as rising demand from an increased number of working parents was not enough to offset government cuts. This includes an estimated expansion of 0.2% in the current year, reaching £3.6 billion...read more.

Industry Statistics & Market Size
Revenue
£3.6bn
Annual Growth 13-18
-0.7%
Forecast Growth 18-23
Profit
Employment
139,732
Businesses
3,863
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Government funding for the 15 hours of free childcare a week has placed pressure on profit
  • Rising regulation has increased costs for nursery school providers over the past five-year period
  • The extension of 30 hours of free childcare is expected to be hampered by funding concerns
  • Industry Report - Industry Locations Chapter

    The industry’s low level of market share concentration means that establishments are distributed in a similar pattern to the population. Nursery schools and classes provide a service that is required across the United Kingdom wherever there are families with children of nursery age. Aecom, a UK planning consultancy, estimates that a nursery needs approximately 10,000 local residents to be financially viable. Pre-primary education services are provided by the devolved governments of the United Kingdom and administered by local authorities.The South EastAreas of high population density, such as the South East, account for a higher share of nurseries. The South East is expected to account for 20.1% of industry establishments, significantly higher than its 13.7% s...purchase to read more.

    Additional Insights for the Pre-Primary Education Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pre-Primary Education Industry are

  • Proximity to key markets
  • Must comply with government regulations
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Female participation rate in the labour force and Public-sector funding for pre-tertiary education in the Pre-Primary Education industry impact industry performance..

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    What's in this report

    What is the Pre-Primary Education Industry?

    Pre-primary education is offered to children up to the age of five to introduce them to a school-type environment before they start primary school. Nursery education, as it is commonly known, is provided by each of the constituent governments of the United Kingdom. The industry includes organised instruction delivered through nursery schools and nursery classes. Programmes offered by child day-care centres and services provided by childminders are excluded from the industry.

    Industry Products
  • Local authority nurseries
  • Privately funded nurseries
  • Community nurseries
  • Private for-profit nurseries
  • Industry Activities
  • Operating nursery schools
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Female participation rate in the labour force
  • Public-sector funding for pre-tertiary education
  • Real household disposable income
  • Demand from child day-care centres
  • Number of births

  • Current Performance
  • Steady demand
  • Public-sector funding
  • Profit squeezed
  • Chart: Revenue Growth

  • Industry Outlook
  • Government funding
  • Growing focus
  • Table: Pre-Primary Education Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pre-Primary Education Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Book Retailers
  • Furniture, Lighting & Homeware Retailers
  • Newsagents & Stationery Stores
  • Toy Retailing

  • Products & Services
  • Private for-profit nurseries
  • Local authority nurseries
  • Community nurseries
  • Privately funded nurseries
  • Chart: Pre-Primary Education Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Parents in the highest income quintile
  • Parents in the fourth income quintile
  • Parents in the third income quintile
  • Parents in the second income quintile
  • Parents in the lowest income quintile
  • Employers
  • Chart: Major Market Segmentation for the Pre-Primary Education Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Pre-Primary Education

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pre-Primary Education Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Pre-Primary Education Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pre-Primary Education Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Curriculum
  • A plan of activities and lessons that makes up a school year.
  • Early Years Foundation Stage (Eyfs)
  • A government framework for teaching and caring for children aged up to five.
  • Employer-Served Nursery
  • A nursery provided by a company through a contract with a local provider.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pre-Primary Education market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pre-Primary Education:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pre-Primary Education market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pre-Primary Education, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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